Google, in partnership with Kantar, has released a new research report 'The Indian News Consumer: Willingness to Pay and Key Drivers' at the third edition of the Google News Summit.

At a time when newsrooms are experimenting with different combinations of formats, revenue streams and content types, the study shines a light on the levers that drive online news subscription and how these vary across languages.

Users, while recognising the value of quality journalism, are overwhelmingly driven by convenience and deterred by cost and a lack of clarity regarding the value proposition of paid subscriptions, according to the study. Quality, flexibility, and convenience are core to winning Indian news subscribers.

While attempting to understand the barriers and opportunities for reader revenue in India, emerging models, such as micropayments and ad-lite experiences, offer promising alternatives, states the report.

67% of current subscribers in the study cited 'reliable content' as a primary factor in their decision to subscribe. 

Among those who haven't subscribed, the top three barriers cited are 'overwhelmed by too many plans/prices' (39%), 'limited budget' (35%), and 'lack of flexible payment/cancellation options' (33%). 

User preferences also varied by language interestingly. The study consistently reveals that 'news in the preferred language' is a highly valued content element across various language groups, including Hindi (67%), Bengali (75%), Tamil (63%), and Gujarati (79%). Two out of three Hindi speakers prioritise news in their preferred language.

While subscription and other revenue models have varying appeal, the overall willingness to pay for digital news content, whether through subscriptions or other models, is comparable between local language and English language news consumers in India, the report states.

Both Kannada and Tamil speakers are relatively more receptive to subscriptions, according to the report. They are also open to sharing first-party data and micro-transactions in form of either pay per content or mini access pass. 

In contrast, first-party data is likely to be the way to unlock value with Bengali and Malayalam speakers. 

The study incorporates qualitative and quantitative data from over 2,000 respondents and nine languages. The insights aim to equip publishers with the knowledge to navigate the digital landscape, capitalise on reader revenue opportunities, and foster sustainable growth, particularly in local language markets.
 
Biswapriya Bhattacharjee, director - B2B and technology, Kantar, said, "Indian digital news consumers increasingly crave immersive, more relevant news consumption experiences, creating a prime opportunity for premium offerings. However, the price-sensitive nature of the market necessitates a diversified revenue strategy. What also comes out strongly is that in order to expand the user base, a meaningfully different and well-communicated value proposition is essential.”

Durga Raghunath, head - India news partnerships, Google India, said, “The Indian digital news market is experiencing dynamic growth, driven by increasing internet penetration and an expanding ecosystem of local language publishers. Understanding the nuances of reader revenue models is crucial for the sustainability and growth of digital news. As part of our on-going efforts to support the news ecosystem, this research provides valuable insights into reader preferences and behaviors, empowering publishers to make informed decisions about their monetisation strategies and build stronger connections with their audiences."